"With two revolutionary hotel brands entering the marketplace and five hotel openings in the next two years, we are confident that Baccarat and 1 Hotels will place Starwood Capital Group at the very forefront of the dynamic hospitality industry."

Starwood announced it will open five hotels in the next 24 months under its new brands, 1 Hotels, a luxury ecologically conscious chain, and Baccarat. Three of the hotels are planned for New York, and the company is also planning openings in the Middle East, Asia and Morocco.

The first Baccarat and 1 Hotel are expected to open in 2014.

In 2005, Starwood acquired Baccarat Crystal, the French manufacturer of fine glassware established by King Louis XV.

As part of its strategy for expanding the brand world wide, Starwood is creating luxury living and retail under the Baccarat name. A flagship store will open in New York City on Madison Avenue in June.

Then in 2014, coinciding with the 250th anniversary of the Baccarat crystal business, Starwood envisions opening the 50-story, hotel with 114 rooms and 61 private residences in the building on 53rd St. Sales of the luxury apartments begin in March.

The Wall Street Journal reported last year, when it was first revealed, that the 53rd St. project was expected to cost more than $400 million.

A spokeswoman for Starwood said the group was not disclosing the cost of the venture. She also said the company was not commenting on concerns about North African unrest in relation to its plans for a Moroccan Baccarat.

Mark Woodworth, president of PKF Hospitality Research, said Starwood is moving at an opportune time.

"The high end of the market throughout the U.S. was the first to recover in terms of their customers and are the first to have their prices recover," he said. "Market fundamentals are coming together nicely."

Woodworth said inbound international traffic to the U.S. is rising, and that should help Starwood move forward with its plans.